Cowell magnetite project advances

Adelaide-based Centrex Metals says financial closure has been completed for its iron ore joint venture with a Chinese steel giant.

The deal with Baotou Iron and Steel is for the company's Bungalow prospect near Cowell on Eyre Peninsula.

Baotou will transfer $8 million into a joint venture account.

Centrex exploration manager Alistair Watts says it is a big step for the magnetite project.

"The key is that we've actually received the funding for the Bungalow joint venture project and that in itself represents a significant commitment from our Chinese partners and it provides a lot of confidence in the project going forward," he said.